Hungaryʼs state debt at 74.5% of GDP

MNB

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Hungaryʼs state debt as a percentage of GDP reached 74.5% at the end of the second quarter, fresh data released by the National Bank of Hungary (MNB) show, as reported by state news wire MTI Friday.

In absolute terms, Hungaryʼs state debt stood at HUF 28.743 trillion at the end of Q2, up from HUF 27.359 tln at the end of 2017. Transactions accounted for just over HUF 1 tln of the increase during the period and revaluations for HUF 381 billion.

The ratio, which includes Eximbank, was up from 73.9% at the end of Q1 2018, and 73.6% at the end of 2017.

The MNB recently started publishing separate state debt ratios, with and without the balance sheet of Magyar Eximbank, in line with a decision by Eurostat, which had maintained for years that Hungaryʼs export bank should be reclassified inside the general government sector, raising state debt.

Excluding Eximbank, Hungaryʼs state debt ratio would have reached 72.5% of GDP at the end of Q2, up from 71.7% at the end of 2017, MTI calculated.

The net general government financing requirement, which MTI noted is a good approximation of the general government deficit, was HUF 1.161 tln in the four quarters to the end of Q2, equivalent to 2.9% of GDP, the MNB data show.

The central bank will publish a full set of financial accounts for the institutional sectors of the national economy for Q2 on October 1.

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